H2 Ventures KPMG Fintech 100 2016

Highlights

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The combination of technology and financial services is resulting in the disruption of the finance industry, and this sector has seen substantial growth over recent years. Global fintech financing has risen seven-fold over the past three years to an estimated US$20 billion, rising 66 percent over the level of investment in 2014. Fintech is clearly not to be ignored, and the next question one must ask is: “who are the most innovating global fintech companies across the globe?”

The Fintech 100 report is a collaborative research effort between KPMG and fintech investment firm, H2 Ventures. The report identifies the leading 50 ‘Established’ fintech companies across the globe, and the most intriguing 50 ‘Emerging Stars’ – exciting new fintechs with bold, disruptive and potentially game-changing ideas.

The Fintech 100 were selected following extensive global research and analysis based on data relating to five factors: total capital raised, rate of capital raising, geographic and sector diversity, consumer and marketplace traction, and X-factor (degree of product, service and business model innovation) – a subjective measure that is applied only with respect to companies appearing on the 50 Emerging Stars list.

Highlights

China now tops the global rankings – within three years, China’s fintech ventures have gone from only one company included in the top 50 rankings in 2014, to being 4 of the top 5 companies and 8 of the top 50 this year.

Greater geographic diversification – the established 50 list comprises fintech companies from 17 different countries compared to 13 countries last year, with companies from France, Mexico, South Africa and Singapore included for the first time.

Disruptors dominate – 9 of the top 10 companies on the list are fintech ‘disruptors’ (and 46 of the top 50) while overall, the number of fintech ‘enablers’ has risen to 28 (up from 25 last year).

Lending returns to the fore – 23 of this year’s top 50 (and 32 of the 100) have business models related to lending (up from 22 last year).

Insurtech continues its climb – 12 insurance fintech companies are on this year’s list, almost double last year’s total.

The emergence of regtech – 9 regulatory fintech companies are on the list this year.

Mega funding rounds – the size of deals/funding rounds above US$1 billion have continued to rise, including Ant Financial, Lufax and JD Finance.

The aggregate level of capital raise continues to rise – reaching a total of US$14.6 billion of capital raised since last year’s report (12 months ago).